Newell Rubbermaid Inc, which makes Parker Pens and Sharpie markers, agreed to acquire Jarden Corp a consumer products company for a price of $13.22 billion, which will add brands such as kitchen appliances by Sunbeam and outdoor gear by Coleman.
Shareholders of Jarden stock will be given $21 in cash as well as 0.862 shares of Newell for each of the shares of Jarden they hold, said the two companies in a prepared statement on Monday.
This implies that an offer per share of $60, a premium of 14% to the closing price of Jarden on Friday. Shares of Jarden were up close to 5% to over $55.25 during Monday’s premarket trading, while shares of Newell dropped to $44.23, which was a drop of 2.3%.
This new deal gives Newell the ownership of brands like the Yankee Candle along with class rings and yearbooks maker Jostens, which was acquired in October by Jarden for $1.5 billion.
Martin Franklin the founder of Jarden has built the business through a number of acquisitions, making it one of the most diversified makers of consumer products in the U.S., which sells everything from condoms to firewood.
Newell Rubbermaid announced that it expects this deal will expand its presence in baby products, food and beverage as well as kitchen appliances amongst geographies and key retailers.
The new company will be Newell Brands, which Michael Polk the CEO at Newell Rubbermaid will run as the CEO.
Earlier in December, it was announced that Newell was in negotiations with Jarden citing one person who had been familiar with the situation.
Newell shareholders will have ownership of 55% of the new Newell Brands company after the takeover transaction is completed, which both companies said would close during the 2016 second quarter.
The new company will have a cost savings over the upcoming four years of $500 million, said the companies.
The deal was based upon the 220.35 million shares of Jarden stock outstanding as of the end of business on October 30.
Goldman Sachs acted as the lead financial adviser in the deal for Newell Rubbermaid, while the board was advised by Centerview Partners.
Jarden’s financial adviser in the deal was Barclays, while its board was advised by UBS Investment Bank.
The post Newell Rubbermaid Acquiring Jarden in Deal for $13 Billion appeared first on Citizens News Report.